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Information about ZKsync (ZK)
ZKsync is a trustless Layer 2 protocol for scalable low-cost payments on Ethereum, powered by zkRollup technology. It is a user-centric zk rollup platform from Matter Labs, with security, user experience, and developer experience as the core focus. ZKsync Version 1.0 launched on the Ethereum mainnet on June 15th 2020, enabling transaction throughput of ~300 TPS.
ZKsync is designed to scale Ethereum without sacrificing the security or decentralization of the network. It uses zero-knowledge rollups, known as “zk-rollups,” to bundle multiple transactions into one single transaction. This approach increases transaction output while minimizing the fees that users have to pay. ZKsync reportedly has a Total Value Locked of over $860 million.
Developed by the Matter Labs team, the ZKsync project has received support from many major investment funds such as a16z, OKX, Crypto.com, Bybit, ConsenSys, and has raised a total of over USD 458 million in funding.
ZK is a native coin of the ZKsync ecosystem, operating on ZKsync according to ERC20 standard, and can be used to:
Specifications
News
The ZKsync Association confirmed the recovery of 5.7 million USD from the stolen tokens. The hacker transferred approximately 5.7 million USD back after accepting a 10% bounty.
Despite the recovery of assets, the market value of the ZK token has shown negligible movement, declining by 0.2% recently, even as the tokens regained value post-recovery.
The ZK token plummeted over 15% following a 5 million USD theft linked to a security breach of its airdrop contract. Although the protocol was unaffected, it triggered a significant sell-off.
The incident has added to the ongoing volatility in altcoins, with other tokens also experiencing sharp declines recently. ZKsync is currently assessing the situation and promises a full update soon.
ZKsync has discontinued its Ignite liquidity rewards program, citing unfavorable market conditions. This decision is effective as of March 17, 2025, and includes the cancellation of the final phase reward allocations.
The project is now concentrating on developing its Elastic Network, envisioning a system of interoperable zero-knowledge chains, instead of maintaining a single-chain program.
Recent data shows ZK tokens have decreased substantially from their all-time highs, and the total value locked (TVL) has fallen to 139 million USD, reflecting significant market challenges.
ZKsync initiated the Ignite program, allocating 300 million ZK tokens (equivalent to 60 million USD) to enhance liquidity incentives across decentralized exchanges and lending platforms. Season 1 runs from January 6 to March 31, offering up to 100 million ZK tokens, approximately 20 million USD, to active DeFi users on the ZKsync Era network.
The launch of the Ignite program catalyzed a significant rise in ZKsync’s total value locked from 97 million USD to 184 million USD within a week. As a Layer 2 solution, ZKsync scales Ethereum dapps by utilizing ZK rollups, increasing transaction throughput and reducing costs. This surge suggests successful incentives for liquidity providers.
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